AutoCanada Inc. Announces OEM Approval of Hyatt Group Dealership and Nissan Open Point Dealership Acquisitions
EDMONTON, June 20, 2014 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX:ACQ) announced today that further to the prior announcements on April 29, 2014 and June 16, 2014, we have received manufacturer approval for the Hyatt Transactions (as defined below). AutoCanada, through certain wholly-owned subsidiaries, entered into agreements with Hyatt Automotive Group Inc. and certain other private arm's length vendors (the "Hyatt Vendors") to purchase the operating and business assets of six dealerships in Calgary (the "Hyatt Dealerships") and one exclusive right to build and operate a Nissan motor vehicle dealership on a designated property in Southeast Calgary (the "Nissan Open Point Dealership"). The Hyatt Dealerships are known by their trade names: Hyatt Mitsubishi, Fish Creek Nissan, Calgary Hyundai, Northland Volkswagen, Hyatt Infiniti and Crowfoot Hyundai. The transactions to acquire the Hyatt Dealerships and the right to open the Nissan Open Point Dealership are collectively referred to herein as the "Hyatt Transactions".
In connection with the Hyatt Transactions, certain affiliates of AutoCanada will enter into long term facility leases with the Hyatt Vendors with respect to the land on which the Hyatt Dealerships are currently located or, in the case of the Nissan Open Point Dealership, proposed to be located.
The acquisition of Hyatt Mitsubishi, Calgary Hyundai, Northland Volkswagen and Crowfoot Hyundai are to close on June 23, 2014. The acquisition of Fish Creek Nissan, Hyatt Infiniti and the Nissan Open Point Dealership is expected to occur on or about July 3, 2014, subject to customary closing conditions.
The Hyatt Dealerships are all located in Calgary, Alberta and include a total of 80 service bays. In 2013 the Hyatt Dealerships retailed a total of approximately 3,991 new vehicles and 2,317 used vehicles.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of AutoCanada in the United States. The common shares described in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered, sold or delivered in the United States absent an exemption from registration.
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 36 franchised dealerships in eight provinces and has approximately 1,800 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, Fiat, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, BMW, and MINI branded vehicles. In 2013, our dealerships sold approximately 36,000 vehicles and processed approximately 364,000 service and collision repair orders in our 381 service bays during that time.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. All statements other than statements of historical fact contained in this press release may be forward-looking statements and forward-looking information. In particular, forward-looking information and statements in this press release include, but are not limited to, statements relating to the completion of the closing of the Hyatt Transactions, including the assumption that all necessary conditions will be satisfied and all necessary approvals will be obtained. Although AutoCanada believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information as AutoCanada cannot give any assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, general economic, market and business conditions. Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive. Additional information on these and other risk factors that could affect AutoCanada's operations, financial results and the completion of the Offering are included in AutoCanada's annual information form and the other disclosure documents filed by AutoCanada with securities regulatory authorities which may be accessed through the SEDAR website at www.sedar.com. The forward-looking statements and information contained in this press release are made as of the date hereof and AutoCanada does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE AutoCanada Inc.For further information:
Jeff Christie, CA
Phone: (780) 732-7164